Micro Economics


Dr. Anjali Dash


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Course Name : Micro Economics

Code(Credit): CUTM1184(3-0-1)

Course Objectives

  • Develop a managerial economics perspective;
  • Facilitate students understand different economic paradigms using Microeconomics concepts
  • Acquire conceptual and theoretical knowledge of microeconomics in management perspective
  • Understand and appreciate the tools of microeconomics and their applications
  • Develop the ability to evolve business/management strategy using economic reasoning
  • Appreciate the new challenges to business management in the internet age
  • Appreciate the linkages between economics and the functional areas of business

Program Outcome

CO1 Acquire the conceptual and theoretical knowledge of microeconomics which is relevant for evaluating economic behavior of an individual economic agent. PO1(3)
CO2 Demonstrate the use of microeconomic concepts like utility satisfying and maximizing traits of consumers, elasticity and opportunity cost in strategic planning; develop an economic perspective of business problems being a leader in future in digital economy PO2(3) PO5(2) PO9(3)
CO3 Evaluate and compare the various types of market structures and use them when planning price policy of a firm and industry and communicate ideas with the policy maker PO3(3) PO4(1)
CO4 Understand and appreciate the production dynamics – including cost, revenue and profit considerations and according frame policy to remove disequilibrium in market structure PO6(3) PO7(2)
CO5 Learn the optimization functions for both consumer and producer equilibrium;  help to the students how to sustainable resources and utilised economic theory on their day to day life PO8(3) PO10(3)

Course Syllabus

Module: I The Central Concepts:

Logic of Economics: Scarcity and Efficiency: The Twin Themes of Economics; Three Problems of Economic Organization: Market, Command, and Mixed Economies, Society’s Technological Possibilities: Inputs and Outputs; The Production-Possibility Frontier: Applying the PPF to Society’s Choices;The Modern Mixed Economy: How Markets Solve the Three Economic Problems; Circular Flow of an Economy; The Invisible hand given by Classical Economists; The visible hand of the government given by modern Economists


Module: II Demand, Supply and its Applications:

Basic Elements of Supply and Demand: Forces behind the demand and supply curve; Shifts in demand and supply curve; Equilibrium of Supply and Demand; Price Rationing;Supply and Demand: Elasticity and Applications: Price Elasticity of Demand and Supply; Elasticity and Revenue; The Paradox of the Bumper Harvest; Applications to Major Economic Issues: Impact of a Tax on Price and Quantity; Minimum Floors and Maximum Ceilings;Demand and Consumer Behavior: Classical Utility Theory-Cardinal Utility; Neoclassical Utility Theory-Ordinal Utility Theory (Indifference Curve analysis; Income effect, Price effect; Substitution effect); The paradox of value; Leisure and the Optimal Allocation of Time


Module: III Theory of Production and Cost:

Theory of Production and Marginal Products: The Production Function; Total, Average, and Marginal Product; The Law of Diminishing Returns; Returns to Scale; Technological Change; Empirical Estimates of the Aggregate Production Function;Economic Analysis of Costs: Total Cost: Fixed and Variable; The Relation between Average Cost and Marginal Cost; The Link between Production and Costs; Diminishing Returns and U-Shaped Cost Curves; Choice of Inputs by the Firm; Marginal Products and the Least-Cost Rule; Transaction Cost, Opportunity Cost and Markets.


Module: IV: Decisions of the Firm, Market Failure and Inefficiency:

Perfect and Imperfect Market: Perfect competition and Pareto optimality; Sources of imperfect competition; Economic Costs of Imperfect Competition; Public Policies on Imperfect Competition


Economics of Risk and Uncertainty: The Economic Impacts of Speculation; Market Failures in Information; Moral Hazard and Adverse Selection;

Externalities: Market Inefficiency with Externalities; Analysis of Inefficiency; Valuing Damages and Policies to Correct Externalities


Text Book:

  • Geetika, Ghosh. P. & Roy Choudhury. P., ‘Managerial Economics’, Tata McGraw Hill EducationPvt Ltd, New Delhi


Reference Books:

  • Samuelson, Paul A. and Nordhaus, W.P., ‘Economics’, McGraw Hill, New York
  • Pindyck, R.S., Rubinfeld D. L. and  Mehta P. L., 'Microeconomics', Pearson Education

Session Plan

Session 1

Introduction to Managerial Economics

Presentation: Introduction micro


Session 2

Scarcity and Efficiency: The Twin Themes of Economics

Presentation: Scarcity and Efficiency


Session 3

The Three Problems of Economic Organization



Session 4

The Production Possibility Frontier


Session 6

Session 7-Project

Assignment 1: Identification of Govt Intervention in India in case of inefficiency, inequality and macro economic problems;

Book Review 1: The Great Unraveling: Losing Our Way in the New Century- Paul Krugman

Session 8

Basic Elements of Demand and Supply


Session 9

Assignment 2: Assess demand and supply of tourism in the wake of COVID-19

Session 10

Session 12

Assignment 3: “How might a drought that destroys half of all farm crops be good for farmers? If such a drought is good for farmers, why don’t farmers destroy their own crops in the absence of a drought? farmers.” Illustrate this proposition using a supply-and demand diagram

Session 13

 Applications of Demand and Supply to Major Economic Issues



Session 14

Caselet 1: Two Ways to reduce quantity of smoking Demanded

Session 15

Classical Utility Theory-Cardinal Utility

Presentation: Utility Theory-classical


Session 16

Neoclassical  Utility Theory-Ordinal Utility

Presentation: Ordinal Utility Theory


Session 17

The Production Function -Total Product, Average Product and Marginal Product


Session 19

The Law of Diminishing Returns

Game: The Tennis Ball

Session 21

Empirical Estimates of the Aggregate Production Function

Presentation: https://slideplayer.com/slide/7659382/

Session 23

The Relation between Average Cost and Marginal Cost


Session 24

Session 26

 Transaction Costs, Opportunity Cost and Markets



Session 27-Project

Book Review 2: Good Economics for Hard Times: Abhijeet Banerjee and Esther Duflo

Session 28

 Perfect competition and Pareto optimality



Session 29

 Sources and Economic costs of imperfect competition


Session 30

Session 31

 The Economic Impacts of Speculation



Session 32

 Market Failures in Information

Presentation: The Economic Impacts of Speculation

Session 34

 Moral Hazard and Adverse Selection

Presentation: Market Failures in Information

Session 36-Project

Session 38

Valuing Damages and Policies to Correct Externalities



Session 39

Assignment 4: Students need to pick up one negative externality and come up with ideas to correct them

Session 40

Caselet 2: The Case for taxing carbon

Session 41-Project

Book Review 4: The idea of Justice: Amartya Sen

Session 42

Doubt Clearing and Wrap up

Our Main Teachers

Dr. Anjali Dash

Assistant Professor

Dr. Anjali Dash is working as an Assistant Professor (Economics) at School of Management, Centurian University of Technology and Management, Bhubaneswar since August 2022. She was a Post-doctoral fellow at International Institute for Population Sciences (IIPS), Mumbai, 2017-2019. She hold Ph.D. degree in Economics from M.P. Institute of Social Science Research, Ujjain, M.P. and Mphil degree in Economics from Sambalpur University. Her interest is on teaching are: Health economics, Economietrics, Microeconomics, Mathematical economics, and Computer application for economic analysis, Statistics. Her research interest is on health economics, poverty, rural and tribal development, urban issues, education, ageing, migration, and employment. She is interested more in interdisciplinary research. She has more than 8 years of post PhD worked experience in research and teaching from various national organization such as Central University of Odisha, Koraput, Centre for Social Studies, Surat, Institute of Economic Growth (IEG), New Delhi, Samarthan Bhopal, Tata Institute of Social Sciences (TISS), Mumbai and Sambalpur University. She has proficient in analytical skill in large data like NSSO, NFHS and SAGE.

Dr. Madhumita Das

Assistant Professor

“We are what we repTeacherseatedly do. Excellence, therefore, is not an act but a habit” I have received my  Ph.D. from the Department of HSS, Indian Institute of Technology (IIT) Kharagpur. Prior to my Ph.D., I also have degrees in M.Phil. in Economics (2007) and MA in Economics (2005), both from Ravenshaw University, Odisha. Throughout my […]